topic If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and then moved those funds to a personal Roth IRA over time, is that a conversion? in Retirement tax questions

If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and then moved those funds to a personal Roth IRA over time, is that a conversion?

918225768 — Mon, 23 Feb 2026 10:19:57 GMT

Re: If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and the...

SantinoD — Wed, 25 Jan 2023 16:29:33 GMT

This is not considered a conversion.

When you withdrew funds from the Oregon PERS and put them into your savings account, that is a distribution (withdrawal) and depending on your age and other rules, it could be considered an early withdrawal. Early withdrawals from a retirement plan incur a 10% penalty, unless you qualify for an exception. To see the rules on early withdrawal Go Here.

When those funds got moved into a Roth IRA that is NOT a conversion. That is simply a contribution to a Roth IRA.

Re: If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and the...

918225768 — Wed, 25 Jan 2023 16:53:53 GMT

Thank you so much for your reply, SantinoD.

I had a feeling that a conversion was probably a more nuanced and complicated process. I appreciate your quick and concise response.

Re: If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and the...

Opus 17 — Wed, 25 Jan 2023 16:59:05 GMT

If you withdraw funds from a qualified retirement plan, park them in your personal bank account, and then deposit them in another qualified retirement plan, that would be an indirect rollover. You must complete the rollover within 60 days. Any funds not rolled over within 60 days will be treated as a taxable withdrawal. And any funds added to the new plan outside of a rollover will be treated as new contributions--they may be tax deductible depending on your circumstances, but you will be subject to annual and income-based limits on contributions. You can also only do one indirect rollover per 12 months. And you would have to tell the new plan in advance that you are doing an indirect rollover so they record it correctly.

If you withdraw funds from a pre-tax retirement account and deposit them in a Roth IRA, that is a rollover and a conversion, and you will pay income tax on the conversion (but not a penalty if you are under age 59-1/2). The 60 day rule still applies.

Re: If I withdrew my funds from the Oregon PERS, moved those funds to my savings account, and the...

VolvoGirl — Wed, 25 Jan 2023 17:00:42 GMT

Are you now retired? You need to have earned income from working to contribute to a ROTH IRA and there is a max each year.

IRS Pub 590-A IRA Contributions

https://www.irs.gov/pub/irs-pdf/p590a.pdf